Petrobras gets purchase offer for Japan refinery

A Singapore-based company has proposed a $650 million deal to Petrobras, including $80 million for the Nansei Sekiyu refinery in Okinawa and $570 million for oil and oil-derivatives stocks at the refinery complex, the Valor Economico newspaper said, citing sources with knowledge of the negotiations.

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By JEFF FICK

RIO DE JANEIRO -- Brazilian state-run energy giant Petroleo
Brasileiro, or Petrobras, has received an offer to purchase a
refinery that the company owns in
Japan, as the company is selling assets aimed at raising $9.9
billion to fund its massive investment plan, the Valor
Economico newspaper reported Friday.

A Singapore-based company has proposed a $650 million deal
to Petrobras, including $80 million for the Nansei Sekiyu refinery in Okinawa and $570 million
for oil and oil-derivatives stocks at the refinery complex, Valor said, citing
sources with knowledge of the negotiations.

Petrobras is in the midst of a divestment program to raise
cash to fund the company's $237 billion five-year investment
plan. The oil company expects to raise $9.9 billion from asset
sales, with a majority of the sales earmarked for 2013, CEO
Maria das Gracas Foster said earlier this week.

The company is also in talks to sell its Argentine assets,
Ms. Foster said.

Petrobras purchased Nansei Sekiyu for a total of $57 million
in two separate transactions with ExxonMobil and Japan's
Sumitomo.

According to the report, Petrobras is also considering the
sale of stakes the company holds in natural gas-distribution
companies in Brazil, as well as several power plants that use
fuel oil and diesel fuel to generate electricity. Stakes in
several oil fields offshore Brazil and onshore natural gas
blocks in Peru also make up part of the divestment plan.

Dow Jones Newswires

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